Which of the Following Is the Best Measure of Performance

question 3

Multiple Choice

Which of the following is the best measure of performance that is independent of the way an entity is financed?

• A)Gross margin percentage
• B)Profit margin
• C)Return on equity
• D)Return on assets

---

Definitions:

Adjusted Trial Balance

A statement that lists all accounts and their balances after adjusting entries are made, used to prepare financial statements.

Unadjusted Trial Balance

A preliminary report listing all the accounts and their balances from the general ledger before any adjusting entries are made to prepare financial statements.

Contra Asset Account

An account on a company's balance sheet that reduces the total amount of the company's asset accounts.

Fixed Asset Accounts

Accounts used in accounting to track the purchase, depreciation, and disposal of fixed assets, which are long-term tangible assets.